Non Profit Strategic Planning

8/9/2019 Non Profit Strategic Planning

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Richard A. Mittenthal

Strategic planning has long been used as a tool for transforming and revitalizing corpora-

tions, government agencies and nonprofit organizations. Recently, however, skepticism about

planning has been on the rise. Political and economic uncertainty is the norm and the pace

of technological and social change has accelerated. There is some disillusionment with plan-

ning efforts that cant keep pace. We did a plan five years ago and havent looked at it since,

is one common complaint. Or, By the time we completed our plan, we were already carrying

out all of its strategies.

But such comments miss the point. Rather than expose some fatal flaw in strategic plan-

ning, they reflect a basic misconception about the purpose and value of strategic plan-

ning and what it takes for a plan and the process to succeed. Indeed, the process can

prove pointless and frustrating and the end product of dubious value when care isnt

taken to set clear, realistic goals, define action steps explicitly, and elicit the views of

major stakeholder groups.

Yet few tools are better suited to help address the staggering array of challenges brought

about by a changing environment. A successful strategic planning process will examine

and make informed projections about environmental realities to help an organization

anticipate and respond to change by clarifying its mission and goals; targeting spending;

and reshaping its programs, fundraising and other aspects of operations.

briefingpaper

strategies to achieve social impact

Strategic

planning

what it is

and isnt

page 2Components

of an

effective

strategic plan page 5

Why vision

matters page 6

How

consultants

can help page 8

A final word page 9

Resources page 10

Inside:

Ten Keys to SuccessfulStrategic Planning forNonprofit and

Foundation Leaders

tcc group


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Plans Into Action: Prerequisites of Success

A successful plan is, by definition, a usable

planone that informs the organizations act ivities

as well as its long-range view, and one that yields

meaningful improvements in effectiveness,

capacity and relevance.

For more than 25 years, TCC Group has assisted

private, community and corporate foundations;

public charities; and nonprofit organizations

throughout the country to develop and design

effective strategic plans. Although the challenges

of funding, governing, and managing each organi-

zation are unique, certain lessons apply acrossthe board. The features of a good planning project

do not varyregardless of its organizational

scope, emphasis or specific issues. This paper

shares ten immportant keys to promote more suc-

cessful strategic planning.

For purposes of brevity and readability, founda-

tions, public charities and nonprofit associations

are all referred to in this paper as organizations.

No organization exists in a static environment.

Social, political and economic trends continually

impact the demand for its offerings and services.

Even as advances in technology present new

opportunities, they also generate new expecta-

tions. Needs and community demographics are all

subject to change. So too are methods for deliver-

ing programs and services. It is thus essential that

a strategic plan reflect the external environment.

Programs, services and operations should be reex-

amined and reshaped in light of current realities

and future projections.

In 1994, the Brooklyn Public Library (BPL)

approved a five-year strategic plan that, pre-

dictably, had run its course by 1999. Most of the

goals had been achieved, says Martin Gomez,

BPLs Executive Director. We embarked upon a

new planning process in 2000, in part because we

believed that we needed to rethink our services

and programs in light of new technology. In the

current market, we realized we could no longer

get by with yesterdays systems. Moreover, while

few had questioned the English-only platform for

the Librarys online catalog five years earlier, an

assessment of Brooklyn demographics, coupled

with information from staff discussion groups

conducted by TCC Group as part of the planning

process, revealed that the librarys user base

included increasing numbers of immigrants from

Latin America, Eastern Europe, the Caribbean

and Asia. Thus, Taking Flight, the Librarys 2001-

2006 strategic plan calls for the development of a

multilingual and more flexible online catalog of its

holdings as well as an advanced telecommunica-

tions infrastructure.

Ultimately, well be able to create virtual collec-

tions of print, video and multimedia materials that

can be accessed from any of 59 branch libraries

throughout Brooklyn, as well as by library users in

other parts of New York City, Gomez says. That

wouldnt have been a top-line priority a decade

ago. Today it is.

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1. A clear andcomprehensivegrasp of externalopportunities andchallenges.

Strategic Planning:What It Is and Isnt

More than a few strategic planning

efforts have run aground because

they were based on a fundamental

misunderstanding of what a strategic

plan is. Sometimes strategic planning

is confused with other planning

modalities, each valid in its own rightbut geared toward a different end

result. To put it simply, not every plan

is a strategic plan.

A strategic plan is a tool that provides

guidance in fulfilling a mission with

maximum efficiency and impact. If it

is to be effective and useful, it should

articulate specific goals and describe

the action steps and resources need-

ed to accomplish them. As a rule,

most strategic plans should be

reviewed and revamped every three

to five years.

An operating plan is a coordinated set

of tasks for carrying out the goals

delineated in a strategic plan. It th

goes into greater detail than t

strategic plan from which it

derived, spelling out time frames a

the roles of individual staff and boa

members, for example. It also has

shorter horizon than a strategic pl

usually one fiscal year.

A business plan is typically focus

on the actions and investmenecessary to generate income from

specific program or service.

business plan includes informati

about an organizations produc

competitive environment and reven

assumptions.

A case statement is geared towa

marketing and fundraising rath

than planning. It describes t

organizations goals, capabilities a

strengths and the benefits it provide

Its purpose is to secure contributio

and grants from individuals, foundtions, corporate giving programs a

other philanthropic entities.

briefing paper

Rising operatingcosts, especially thosconnected withrepairs and

maintenance, weredraining ourresources, overtaxingour board andhampering oureffectiveness.

Noelle Mills AdlerPresident

LCU


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The bedrock of any successful strategic plan is a

warts-and-all consideration of capabilities and

strengths, weaknesses and limitations.

Information, both objective and subjective, must

be gathered from a wide array of sources, includ-

ing staff and board members, clients, community

leaders, funders and partner organizations,

among others.

Sometimes the process yields unexpected results.

A 1999 organizational assessment led to a turning

point in the nearly 150-year history of LCU, a

provider of low-cost housing for deserving young

women studying and working in New York City.

Interviews with board members and staff brought

out a pervasive belief that it was time for LCU to

consider new approaches to fulfilling its mission.

Rising operating costs, especially those connect-

ed with repairs and maintenance, were draining

our resources, overtaxing our board and hamper-

ing our effectiveness, says LCU President, Noelle

Mills Adler. The capacity assessment helped us

fully grasp how serious our situation had become.

It also presented us with two possible solutions:

professionalize our operations in order to reduce

the load on the Board, or sell our residences and

establish a grantmaking program.

LCUs Board reflected on what would be most

realistic and chose the latter course. Our plan is

to provide housing stipends for young women in

conjunction with schools and nonprofit housing

providers throughout the city, says Adler. Its a

way of making better use of our resources and

serving an even larger client base.

A capacity assessment likewise laid the ground-work for a successful strategic plan for the

William Caspar Graustein Memorial Fund, a pri-

vate foundation dedicated to improving public

education in Connecticut. The foundation

retained TCC Group to organize and facilitate a

strategic planning project in 1999 as its existing

five-year plan was moving into its last year. The

process examined all aspects of the Funds opera-

tion, including governance, staffing, program,

communications and evaluation. The assessment

provided a stepping-off point from which the actu-

al plan development could proceed. The goals and

strategies outlined in the plan that was approved

by the Funds board in 2001 focused on increasingorganizational capacity to ensure program

success.

At one point or another, all important stakeholder

groups should have a voice in the planning effort.

At a minimum, that includes staff, current and

incoming board members, clients, funders and

partner organizations. To be sure, all views will not

be weighted equally, nor will every staff member

be involved at every stage: it is possible to be

inclusive without falling into the too-many-cooks

trap. But a strategic plan should not become the

exclusive responsibility of a small cadre of stake-

holders. If the planning process is to succeed, it

must incorporate the views of all the constituen-

cies that will be af fected by the plan or have a role

in its implementation.

When Ethical Culture Fieldston School began

work on a new strategic plan in 1999, its intention

was to honor the long tradition of democratic,

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3.Aninclusiveapproach

2. A realistic andcomprehensive

assessment of theorganizations strengthsand limitations


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broad-ranging consultation, says school headJoseph Healey. But we also needed to avoid char-

tering so many committees and adding so many

layers that the work would bog down. To achieve

inclusiveness without sacrificing productivity, the

work was divided among task forces in several key

areas, including diversity, faculty life, governance

and buildings and grounds. Each task force, as

well as an oversight committee, drew representa-

tives from each of the schools major constituen-

cies faculty, student body, parents, administra-

tion, alumni and trustees.

In a real sense, our methodology was consistent

with our objective, says Healey. The school wasoperating as three separate schools two for

lower grades and one for upper grades, each with

its own principal and distinctive curriculum, with

little sense of institutional cohesiveness. We are

striving to unify the three into a single PK-12

school with a single mission, culture and curricu-

lum. Ethical Culture Fieldstons new strategic

plan, completed in December 2000, is an impor-

tant first step in that direction, he says.

Strategic planning should be a participatory

undertakingbut not an anarchic one. As a mat-

ter of practical necessity, the core work will gen-

erally be entrusted t o a small planning committee

with sufficient decision-making authority to keep

the project moving forward.

This isnt to suggest that the committee membershave carte blanche to adopt and implement key

action steps, or that they not be held accountable

to the board or larger community. But neither

should they be subjected to constant second-

guessing, or be required to seek board or man-

agement approval at every step. The boards con-

fidence in their skill and judgment must be implic-

it. At the Miami, Florida-based John S. and James

L. Knight Foundation, a board-staff committee

oversaw the strategic planning effort from start

to finish, reviewing the scope of work and tracking

its progress through regular reports. The commit-

tee also planned and led a three-day retreat where

the framework and direction of the new plan wereformalized. In the end, the Board discussed and

approved the final plan a common organization-

al practice, but they knew that they had appoint-

ed a strong planning committee, and that the

committee had done its job, comments Executive

Vice President Penny McPhee. There was no

need to revisit or question the end result.

At Safe Horizona New York Cit y-based nonprofit

formerly called Victim Servicesthe bulk of the

initial planning work was done by an eight-person

committee comprising four staff members and

four representatives from the Board of Directors.

In the 20 years since its founding, Safe Horizon

had strayed from its mission to provide support

for victims of crime and abuse and their families.

The organization had branched out into several

new areas, including immigrant services, which

were valuable in their own right, but not consis-

tent with our reason for being, says Senior Vice

President Elizabeth McCarthy. We saw strategic

planning as a way to get back to our founding

mission.

Committee empowerment was especially impor-

tant because of our aggressive time frame,

McCarthy adds. Work began in December 1999

with the goal of having a plan in place before the

end of the fiscal year, the following June an

ambitious undertaking for an organization with

more than 60 sites and a $40 million budget. While

the committees recommendations were subject

to Board approval, the Board took them very seri-

ously, McCarthy says. In fact, most members

didnt see the plan until it was in close-to-final

form in May.

4.Anempoweredplanningcommittee

We saw strategicplanning as a way toget back to ourfounding mission.

Elizabeth McCartSafe Horizon

4 briefing paper


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Some executive directors and board members are

inclined to take a hands-off approach when it

comes to strategic planning. They may simply lack

the necessary time or interest to get involved. Or

they may underestimate the significance of the

task at hand and its potential impact on the

organization.

Must executive directors micromanage the

effort or involve themselves in its every aspect?

Certainly not. But their active participation

that is, buy-in that goes beyond mere verbal

endorsementis crucial. Absent their vision

and commitment, and the certainty that funds

and resources will be available to implement

action steps, others are unlikely to take the

process seriously.

Prior to the arrival of Gordon J. Campbell as

Chief Executive Officer of Safe Horizon in

1998, the Board had taken steps toward draft-

ing a new strategic plan. But Gordon was

uncomfortable with that approach, says

Brooke McMurray, Chair of the Planning

Committee. He felt that this needed to be an

agency-wide effort, involving staff as well as

board, front-line personnel as well as senior

management. In fact, Campbell hosted a two-

day senior management retreat that resulted in

development of core features of the plan.

What we needed was a plan for increasing our

impact and relevance in tangible ways,

McMurray says. Without Gordons dynamic

involvement, I doubt we would have gotten

there.

An effective plan takes multiple elements into

account: the funding climate, the expectations

of clients and other stakeholders, the competi-

tive landscape and the exigencies of operations

and programming. Neither board nor staff, act-

ing on its own, has a full grasp of all those areas.

Hence the need to ensure that both are fully

involved.

As policy-sett ers and financial and legal watch-

dogs, board members are charged with keeping

an organization on track and working to fulfill

its mission. Its an important responsibility

one to which they must be fully committed,

notwithstanding any other professional and

business involvements. The duties of gover-

nance require that board members figure cen-

trally in defining the goals of the plan and laying

out its structure.

However, removed from day-to-day operations,

board members may propose ambitious ideas

that require tempering or scaling back. Staff

members are likely to have a more intuitive and

informed understanding of the organizations

internal workings and capabilities, and a clearer

sense of what is feasible and what is not. They

understand the ins and outs of programming,

operations and personnel functions; theyre the

ones who deal directly with clients.

6. Sharing ofresponsibility by

board and staffmembers

Components ofan effectivestrategic plan

Strategic plans are comprhensive documents thatcover all aspects of anorganizations work, incluing programs and servicemanagement and opera-

tions, fundraising andfinances, facilities and goernance. Depending on thorganizations scope andemphasis, a plan might adescribe approaches toenhance marketing, inter-nal and external communcations, membership deveopment and administrativsystems.

Information about thesetopics should be presente

in an action-oriented for-mat. Good strategic planinclude:

A Mission StatementA brief expression of theorganizations purpose. Itshould answer the ques-tions Why do we exist?and What, at the mostbasic level, do we do?

A Vision StatementA description of the organ

zations desired futurestate.An organizationalvision statement is internly focused: It projects thfuture in terms of the program, budget or staff sizeanswering the questionWhere do we want tobe? Some organizationsalso adopt societalvisionstatements, articulating tdesired influence of their

continued on page 7

5

5. Involvement of

senior leadership


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The upshot: professional staff and board mem-bers each bring complementary skill sets and

perspectives to the table. One without the other

would result in a skewed and incomplete pic-

ture. The planning effort should draw on both.

Established in 1991, the Foundation for t he Mid-

South (FMS) has since evolved into a kind of

hybrid foundation, in the words of its presi-

dent, George Penick. Wed started out as an

operating foundation, and later became a pub-

lic charity, he says. Today we function as a

combination of a number of philanthropic mod-

els. The foundations original purpose to

build the communities, resources and leader-ship of Arkansas, Louisiana and Mississippi

through change strategies based on regional

cooperation remains in place. But by 1999, a

certain ambiguity had crept into the founda-

tions message: its board seemed unclear on

FMSs institutional priorities.

We werent in disarray or on the brink of a

crisis, Penick says. It was more of a tremor

than an earthquake. But we needed to have

everyone on the same page with regard to our

mission, objectives and management prac-

tices. The development of a strategic plan pro-

vided the board with an opportunity to immerse

themselves in our act ivities and operations to

really get their hands dirty, he says. For their

part, I think they felt TCC Groups work gave

them a greater sense of the scope and workings

of the Foundation. And the entire experience

gave them permission to ask tough questions

that might not otherwise have been raised. The

Board, in fact, was responsible for framing the

plan and defining the foundations mission and

goals; the staff played an essential role by

restructuring programs within that framework.

Were on a much better footing than before,

Penick says. Board members have a much

clearer sense of programs. Outcomes are more

measurement-driven. And program managers

have a better awareness of what their programs

actually cost.

Why vision matters

A strategic plan cannot succeed unless it is derived from a clear vision of

what the organization will look like at a specific point in the future. This

vision is encapsulated in a written description of the organizations

desired future state in terms of budget size, client base, staffing levels

and program areas and other parameters. (Alternatively, a vision state-

ment may focus outward on the organizations societal impact. See

Components of an Effective Strategic Plan on page 4.)

Sometimes the vision is so self-evident at the outset of

the planning process that the statement virtually writes

itself. But more often, the existing vision may be hazy,

ambiguous or outdated. Indeed, the effectiveness of

many organizations is hampered by conflicting visions,

or myopic visions devoid of big picture thinking.

Regardless of the starting point, an external scan and

organizational assessment are essential prerequisites

for draft ing an effective vision statement. They ground

the process in reality, thereby helping stakeholders

narrow their choices or see opportunities that they had

not previously considered.

Group facilitation techniques can be especially useful. TCC Group regu-

larly convenes retreats for planning committee members and other key

stakeholders to develop a vision for the future. Creative groups with goodinsights about programming and constituents needs can write newspa-

per headlines about their work and operations five years down the road

and use this as a starting point for deriving the vision. The scenario

approach, whereby a planning committee discusses several different pos-

sible directions for the future, is another common tool for building con-

sensus.

A vision statement should be explicit, straightforward and, above all, con-

cise. Omit secondary points and needless digressions; keep the state-

ment focused. Because of the defining nature of the vision statement, it

is important for an organization to invest as much time as necessary in

crystallizing its ideas and articulating them on paper.

A vision

statementshould beexplicit,straight-forwardand, aboveall, concise.

6 briefing paper


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Clearly, each organization has its own individu-

alized mission, client base and operating

culture. Thus, each must map a strategy, incor-

porating goals and action steps carefully

customized to its needs. A plan that is appropri-

ate in one setting wont necessarily be appro-

priate in another, no matter how similar the

organizations.

Nonetheless, it is possible to learn from the

successes, failures and mistakes of others. One

way or another, every organization and founda-

tion deals with challenges related to human

resources, technology, capacity building,

fundraising, organizational development and

governance. Whatever their specific goals and

methods, all must find ways to remain relevant,

meet the needs of a changing client population

and make the best use of available funds.

Often, a solution that works for one can be suc-

cessfully adapted by another.

Thus, many comprehensive planning processes

include a survey of comparable organizations

experiences in dealing with similar challenges.

These can be researched via interviews, data-

base searches and a review of relevant litera-

ture, such as journal articles and position

papers.

In preparation for formulating a new strategic

plan, the Knight Foundation was particularly

interested in examining its evaluation and

communications functions. Toward this end,

TCC Group conducted extensive benchmark-

ing interviews to obtain information about

enhancements other large foundations were

making in these areas. The interviews gaveus a broad context from which to make

informed decisions about the future, says

Penny McPhee. We learned some new

approaches that our planning committee

might never have previously considered.

While missions and visions are essential to inspir-

ing commitment to your organization, they may be

seen as hollow unless accompanied by an orga-

nized description of activities needed to fulfill

desired aims. (See Components of an Effective

Strategic Plan on page 4.)

Developing a workable strategic plan means

dissecting the organizations objectives and

strategies and determining which take prece-

dence. Sometimes it is easy to define first steps,

such as shoring up current operations before

moving on to replication in new sites or restruc-

turing a Board. In other instances, leading strate-

gies may be less clear, but prioritization is still

essential. When a planning committee focuses on

coming up with new ideas without determining

which are most important, the task of implement-

ing the plan becomes overwhelming. Goals are

rarely achieved.

The best time to make these tough choices is

after key features of the mission and the vision for

the future are clear. The planning committee

should outline the full list of priorities and, if there

are many, decide which to move ahead on and

which to cut back. Outside consultants can often

help facilitate this type of discussion and build

consensus. Once priorities are set, members of

8. Clear priorities andan implementation plan

7. Learning from

best practices

work on their target comnity or constituency. This of vision statement answthe question What is theimpact of our work?

A Values StatementThe principles on which aorganization is built, and guide its planning, operatand programs. It answersquestion What do webelieve in?

Goals and ObjectivesThese express desired outcomes and may be focuseon discrete parts of the onizations programming ointernal operations. Progrtoward achieving goals aobjectives should be meaable.While the terms areoften used interchangeabgoals are generally morecomprehensive or far-reaing than objectives. Framclearly, they answer the q

tion What do we want taccomplish?

Strategies and TacticsThese consist of approachor sets of activities needeachieve the goals and obtives.They answer the qution How will we actualaccomplish our work?

An Implementation PlanThis is an organizationalusers guide to the st

gic plan. It spells out thecost, duration, priority orand accountability for eacstrategy and tactic. Theimplementation plan answthe questions What are specific priorities? andHow can we pursue ourplan in a logical and feasfashion?

continued from page

7


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the planning committee need to identify strategiesor sets of activities to achieve the goals and

objectives.

Next, staff members often give critical input about

the costs of new ideas and who might take on the

responsibility. Having such extensive information

allows key individuals on the planning committee

to make further choices about sequencing and par-

ing back (or in rare cases, stepping up) the activi-

ties represented in the plan. It often takes time to

achieve this level of detail, but in the long run it is

worth it.

The National Center for Learning Disabilitiesworks to increase opportunities for all individuals

with learning disabilities to achieve their potential.

TCC Group worked with the organization to create

a plan that included information about the organi-

zations vision, target audience and goals. The plan

also encompasses more than 50 strategies cover-

ing all facets of the organization as well as infor-

mation about who has responsibility for each strat-

egy, how much implementation would cost and

when it will happen. This tool has been incredibly

helpful for our work, says Jim Wendorf, Executive

Director of NCLD. We have clear ideas of what

new activities we need to fundraise around and,

whenever the Board gets into a debate about new

program ideas, we can refer to the strategic plan.

It has also helped us assess our progress and see

how much we have accomplished in a short span

of time.

For small and mid-size organizations, strategic

planning often moves forward on a speedy

timetable. But for larger organizations with many

constituencies, the process may advance much

less quickly. When an organization is making major

changes and needs extensive buy-in, the process

may not be perfectly linear. As information is gath-

ered, sifted and analyzed, assumptions are

rethought, new ideas advanced and old ones

revamped or discarded.

It is important to keep things on course and main-

tain momentum, but rushing is counter productive.

We recognized a compelling need to revisit our

existing plan and rethink our priorities, recalls

Penny McPhee of the Knight Foundation. At the

same time, we knew at the outset that the process

could take a year or longer if it was to be done

right. For one thing, staff and Board members had

to fit their duties into already crowded work sched-

ules. The reality is that we simply didnt have the

time or resources to devote every waking moment

to the strategic planning process, says McPhee.

We had a foundation to run.

Further, the planning process coincided with the

arrival of a new president who was eager to build

a consensus and willing to take the time to do so,

says McPhee. Historically, Knight had addressed

two key areas: journalism and quality of life issues

in 26 U.S. communities. We expected to make

changes, but didnt expect to wind up with a plan

that took us in such a markedly different direction,

says McPhee. While not abandoning its twin focus,

the Foundation eliminated several grant programs,

restructured its staff and revamped its philan-

thropic criteria to meet its grantees needs in a

more focused way. We have much greater impact

now, says McPhee. That wouldnt have been pos-

sible had we cut corners in the planning process.

How Consultants Can Help

Many organizations large and small have Board and staff members wi

strategic planning experience. What they often lack are objectivity, dis

pline and time. A consultant can provide invaluable assistance in designi

a strategic planning process that involves all key stakeholder groups in

cost-effective way. Consultants can also obtain sensitive information co

fidentially and share it in a useful fashion.

Other productive roles for consultants include providing expert advic

based on their work with other organizations; facilit ating consensus amo

stakeholders with differ ing points of view; keeping planning commit tees

track and on schedule; and helping to organize seemingly diffuse or contr

dictory t houghts and approaches into a sound strategic plan document.

What outside consultants cannot do is take full responsibility for developi

the strategic plan, or determine an organizations mission, vision, goals

implementation act ivities. Rather, their role is to facilitate a process whe

by the organizations leadership makes t hose decisions. Nor should cons

tants be expected to communicate to an organizations constituents abo

the value of a planning process or generate enthusiasm for new direction

It is the consultants job to furnish background information when need

and to focus on process. This ensures that the plan reflects t he interests

individuals who will be instrumental in helping the organization thrive in t

future.

8 briefing paper

Everyoneunderstood theimportance ofmaking this aparticipatory and

collaborativeventure.

Gail NayowithCitizens Committeefor Children

9. Patience


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No matter how relevant its original mission, no

organization can afford to shackle itself to the

same goals, programs and operating methods

year af ter year. As client needs, market conditions

and funding criteria change, strategies need to be

revisited regularly. Sometimes all thats needed is

fine-tuning; other times, a more fundamental

rethinking of goals and opportunities may be

required. If they are to remain viable and effect ive,

organizations must be prepared to change as

extensively as conditions require.

Prior to 1994, Citizens Committee for Children of

New York (CCC) had never drafted a strategic

plan. What the organization did have was a clear

mission to ensure that every New York City

child is healthy, housed, educated and safe.

Since its founding, CCC had applied a broad array

of advocacy tools to provide an effective voice

for children and make sure children in every city

neighborhood had the rights, protections and ser-

vices they deserve, says executive director Gail

Nayowith. With the approach of CCCs 50th

anniversary, we decided a strategic plan could

help us clarify and recommit to our mission and

make sure we were using our resources to achieve

the best possible results for kids.

From the beginning, Nayowith says, everyone

understood the importance of making this a par-

ticipatory and collaborative venture. We knew that

serious changes were likely, and that change

always carries risk. I think we all recognized that

the best way to manage that risk was to make

sure we were all on the same page.

In the end, there wasnt a single aspect of theoperation that wasnt changed in some way, says

Nayowith. Governance was closely reexamined

and overhauled: Board size was reduced, the

bylaws were strengthened and, for the first time,

term limits were set for directors.

Putting our heads together, we also reworked our

basic operating model with an eye toward becom-

ing less of a think tank and more action-oriented,

says Nayowith. While CCCs original mission had-

nt changed, we needed to recapture our original

agility and nimbleness. The strategic planning

experience helped both staff and board see that

in an increasingly conservative funding environ-ment, the surest way to achieve that mission

would be through purposeful action not end-

less examination and discussion.

Apart from governance and organizational

changes, the plan helped CCC double its fundrais-

ing within two years, becoming an even stronger

and more effective advocate for children while

eliciting the single largest funding increase for

childrens mental health programs in the history

of New York St ate.

We also found ways to use our communications

resources more efficiently, resulting in an expo-

nential increase in media coverage and visibility,

says Nayowith. For an organization whose stock

in trade includes advocacy, the shaping of public

policy, and the dissemination of information,

thats a very valuable payoff.

A Final Word

It is important to understand the limitations as

well as the possibilities of strategic planning. A

strategic plan is not a wish list, a report card or a

marketing tool. It is certainly not a magic bullet or

a quick cure for everything that ails an organiza-

tion especially if the plan winds up on the shelf.

What a strategic plan can do is shed light on an

organizations unique strengths and relevant

weaknesses, enabling it to pinpoint new opportu-

nities or the causes of current or projected prob-

lems. If board and staff are committed to its

implementation, a strategic plan can provide an

invaluable blueprint for growth and revitalization,

enabling an organization to take stock of where it

is, determine where it wants to go and chart a

course to get there.

9

10. A commitmentto change


10/12


11/12

Grace, Kay Sprinkel. The Boards Role inStrategic Planning. BoardSource (formerly

National Center for Nonprofit Boards), 1996.

ISBN: Not applicable

Availability, $9 (members), $12 (non members):

http://www.boardsource.org/Bookstore.asp or

800.883-6262

This best-selling booklet explains the importanceof strategic planning and why board involvement

is essent ial. It discusses types of planning,

defines key planning terms and outlines a sample

process. The lesson discusses the importance of

ongoing monitoring, evaluation and revision once

the plan is in place. A valuable primer for board

members and executives who are beginning a

planning process.

Kibbe, Barbara and Fred Setterberg (for The

David and Lucile Packard Foundation).

Succeeding With Consultants: Self-Assessment

for the Changing Nonprofits. The Foundation

Center, 1992.ISBN: Not applicable

Availability, $19.95 through The Foundation

Center at 212.620.4230

Based on the Packard Foundations work with

nonprofit organizations and consultants over the

last decade, this guidebook provides nonprofit

leaders with the basics of how to assess manage-

ment and organizational capacity; when a consul-tant may be needed and how to select and use one

effectively; and how to begin a process of organi-

zational planning and change. In plain prose, this

resource presents nonprofit executives with the

right questions to ask before engaging in a plan-

ning process. It introduces who consultants are

and what they do, how to select and hire one and

how to evaluate the consultant relationship.

Porter, Michael E. Operational Effectiveness Is

Not Strategy. Harvard Business Review,

November-December, 1996.


Availability, $8.50 (Hard Copy or Electronic):

http://www.harvardbusinessonline.com or

800.988.0886

Written by a leading thinker and writer regarding

competitive strategy in the business world, this

article pushes the reader to think about the dis-

tinction between doing work well and doing work

strategically. Porter argues that the essence of

strategy is choosing to perform activities differ-

ently than rivals do. A thought-provoking article.

Stern, Gary. The Drucker Foundation Self-

Asessment Tool: Process Guide. Drucker

Foundation and Jossey-Bass Publishers., 1999.

ISBN: 0-787-94436-X

Availability, $30: http://www.wiley.com or

877.762.2974

The Drucker Foundation Self-Assessment Tool:

Process Guide lays out the three phases of a full

self-assessment process and gives step-by-step

guidance.

11

Mittenthal, Richard. Effective Philanthropy: The

Importance of Focus. TCC Group, 2000.


Availability, downloadable at

http://www.tccgrp.com or phone 212.949.0990

This briefing paper provides insight into helping

foundations and philanthropies define a carefully

articulated purpose, a clear understanding of the

larger environment in which they operate and a

carefully defined grantmaking program. With a

detailed look at the prerequisities to effective

philanthropy, this resource examines the neces-

sary ingredients f or an organization to achieve

success.


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About TCC GroupFor over two decades, TCC has provided strategic

planning, program development, evaluation and

management consulting services to nonprofit

organizations, f oundations, corporate community

involvement programs and government agencies.

In this time, the firm has developed substantive

knowledge and expertise in fields as diverse as

community and economic development, human

services, children and family issues, education,

health care, the environment, and the arts.

From offices in Philadelphia and New York, and

full-time staff in Chicago, the firm works with

clients nationally and, increasingly, globally. Ourservices include strategic planning, organization-

al assessment and development, feasibility stud-

ies, program evaluation and development, board

development, restructuring and repositioning, as

well as grant program design, evaluation, and

facilitation.

Approach

Our approach is governed by the need to estab-

lish a clear and engaging consulting process that

offers structure and predictability as well as f lexi-

bility to meet unforeseen needs. Working in multi-

disciplinary teams, we tailor each new assign-ment to meet the individual needs and circum-

stances of the client. We develop a scope of work

that responds to the particular challenges,

timetable and budget for the assignment.

Sometimes clients engage us for short-term

research, problem solving, or facilitation projects.

Other times we provide comprehensive planning

and evaluation assistance over a longer period or

conduct other activities, over one or more years.

Increasingly, TCC helps clients manage and imple-

ment their work and provide advice on an ongoing

basis. We bring to each new assignment the per-

spective of our expertise, broad experience and

the enthusiastic commitment to get the job done

right.

Our Services to GrantmakersOur distinctive competence ranges from estab-

lishing foundations to asessing grantees and their

needs, to developing funders internal processes

and external communications strategies. We have

extensive experience in helping private founda-

tions, corporate community involvement pro-

grams and government agencies understand and

improve both grantmaking and organizational

issues.

Services include:

Grantmaking strategy and needs assessment

Program design

Grantmaking and program management

Evaluation

Strategic planning

Organizational development and assessment

Foundation format ion

Strengthening grantees

Our Services to Nonprofit Organizations

We provide an array of consulting services that

can help nonprofit organizations address opera-

tional and environmental challenges. As a result

of their work with us, our clients are able to:

Strategic planning

Business planning

Benchmarking, peer review and research

Program feasibility and design

Marketing strategy

Program evaluation

Organizational assessment and development

Governance review and board restructuring

Training on topics such as strategic planning,

governance, developing mission statements,

and addressing challenges at particular

stages of an organizations life cycle

For more information about TCC Group or to learnhow we can help your organization, visit us online

at http://www.tccgrp.com.

12

TCC Group

New York50 East 42nd Street

19th Floor

New York, NY 10017

phone: 212.949.0990

fax: 212.949.1672

Philadelphia

One Penn Center

Suite 1550

Philadelphia, PA 19103

phone: 215.568.0399fax: 215.568.2619

Chicago

875 North Michigan Ave

Suite 3930

Chicago, IL 60611

phone: 312.642.2249

fax: 312.642.2259

Website

http://www.tccgrp.com

Email

[email protected]

Contact a TCC offic

Published 2002.

Richard A. Mittenthal is President of TCC Group. Laura Colin Klein, Affiliated Consultant, was instrumental

in conceptualizing and developing this paper. Special thanks also to Paul Connolly for his contributions to

this paper.

Non Profit Strategic Planning

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Transcript of Non Profit Strategic Planning